However, under the new rules, banks will also focus on the authentication of the transaction and compliance requirements. As part of the “China Online Trade Fair Series”, DHgate, China’s leading B2B cross-border eCommerce marketplace, is organizing China (Suzhou) Online Trade Fair from November 26 th, 2020 to February 25 th, 2021. Cross border ecommerce in China alone is worth $60 billion according to Bloomberg but legislation might impact it. "There is a trend towards more direct shipping out of China through digital cross-border shopping channels, which helps alleviate some of the downtrend in Chinese exports driven by the trade … In France, cross border purchases are the fastest growing ecommerce segment with nearly half of all French consumers buying from cross border merchant. On March 15, the Chinese side of the cooperation center began to resume operations. Foreign firms engaged in non-investment businesses will be allowed to make equity investments on the mainland with their capital funds. Non-financial enterprises within the pilot area can now register foreign debts up to twice their net assets at the local foreign exchange bureau. Xu Zhixian is the manager of a duty-free shop in the center. It was decided at the meeting that the pilot reform of foreign exchange receipts and payments facilitation will be expanded. More efforts will be made to develop a network of high-standard free trade areas, foster new forms of industry in foreign trade, and set up another group of comprehensive pilot zones for cross-border e-commerce. Attendees at the Wednesday meeting agreed on 12 measures to boost cross-border trade and investment. Another common question is: who handles currency conversion when conducting cross-border trade with China? Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. On the first January 2019, the Chinese government issued, updated and imposed new rules on cross-border trade: The Cross-border E-commerce Retail Imports Regulation ("The Circular"); Cross-border e-commerce trade has been flourishing in China, with turnover rising 80.6 percent from a year earlier to 90.24 billion yuan last year. Most Pakistani traders in Xinjiang cannot afford to ship containers through the Khunjerab Pass and rather carry the goods purchased in China with them on the daily buses to Sost, Pakistan, thus avoiding customs duties. WHAT EXACTLY IS CROSS BORDER E-COMMERCE? Cross-border, on the other hand, is defined as the direct import of goods from outside China through special cross-border e-commerce platforms and the preferential policies of special economic zones or warehouses (free trade zones). "E-commerce trade volume reached about 1 billion yuan between January and September. Similar to tariff. BEIJING, Oct. 23 (Xinhua) -- China will introduce more measures to better facilitate cross-border trade and investment, including improving foreign exchange management and further streamlining regulatory requirements with a view to attracting foreign investors with a more enabling business environment. Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. By cross-border, I mean those channels such as Tmall Global or JD Worldwide, which allow foreign brands to sell to Chinese consumers from outside of mainland China, be … Our subscription service offers regular regulatory updates,
For Tmall Global, specifically, more than 80% of the brands that we currently sell made their China debut on the platform. Business reports, such as trade credit and trade financing, can now be handled online through the foreign exchange monitoring system for trade of goods, without the need to report to the local foreign exchange bureau on site (except for certain special business). China's cross-border e-commerce market has grown remarkably since 2014, with the import proportion of total e-commerce sales soaring to 10.2% in 2017 from 1.6% in 2014. Eligible enterprises in the pilot area can use capital fund, foreign debt, and funds raised by overseas listing for domestic payment without providing supporting documents to the bank to prove the authenticity of the transaction on case-by-case basis before the foreign exchange settlement. Cross-Border E-Commerce Trade. Crossborder # trade in Pingtan, Fujian province, has experienced doubledigit growth despite the # COVID_ 19. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Sorry, your blog cannot share posts by email. Policies on export tax rebate and credit-based insurance will be further improved. According to the announcement, restrictions placed upon the use of foreign exchange settlement in the domestic asset realization account will be removed. businesses establish, maintain,
The new rules speed up the equity transactions between Chinese businesses and foreign investors. If the income declaration form of the to-be-verified account is required to be submitted to the foreign exchange bureau under the current rule, the enterprise may be exempted from this step in the future. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. The reporting processes on foreign exchange businesses for trade in goods will be improved. All countries have these various tax rates depending on the product. Another 141,000 got newly registered, up by 7.7 percent year-on-year. Imports and exports totaled 22.91 trillion yuan (about 3.24 U.S. dollars), up by 2.8 percent year-on-year. Trade between the Pingtan Comprehensive Experimental Zone and Taiwan has continued smoothly, increasing 67 percent yearonyear in terms of package volume. Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. The case-by-case basis registration of non-financial enterprises’ foreign debts with SAFE will now be cancelled under the pilot scheme – this will apply on a trial basis in Hainan province and the Guangdong-Hong Kong-Macao Greater Bay Area. Trump Seeks to Intervene as States Join Texas Election Suit Nov 06,2020. China’s foreign exchange control regime concerns all cross-border transactions to a greater or less extent and often plays an important role in driving transaction structures and financing arrangements for … The previous requirements to report to SAFE for foreign exchange transactions during the counseling period have now been removed. "Given the increasing complexity on global financial markets, it is important to guard against the risks in cross-border capital flows and maintain financial stability. "It is important to keep foreign trade and investment stable under the current situation by taking further steps in opening-up," Li said. Most of the provisions of this article will take effect on the issuing date, except the new online foreign exchange reporting system for businesses engaged in the trade of goods, which will take effect from January 1, 2020. Small and micro cross-border e-commerce enterprises that handle the collection or payment of foreign exchange of trade of goods less than US$200,000 accumulated per year, are exempt from the registration of “list of enterprises engaged in foreign exchange trade receipt and expenditure.”. "China has a vast domestic market, yet is also deeply integrated into the global economy. The Alataw Pass, a major rail port at the China-Kazakhstan border in Xinjiang, has shown great market potential in cross-border e-commerce trade since the business was launched in January. With the rise of Alipay and WeChat Payment, there are now two clear alternatives: Alipay cross-border and WeChat Payment cross-border. The contracted engineering enterprises can manage and allocate the funds of different overseas engineering projects in a centralized way to facilitate the cash flow efficiency and develop in overseas markets. In 2019, China was ranked 65 out of 190 countries, with a score is 82.59, entailing a significant improvement. Under the new rules, enterprises can decide whether to open a to-be-verified account for export earnings. "E-commerce trade volume reached about 1 billion yuan between January and September. Non-bank debtors can now go directly to the bank to cancel their foreign debt registration, instead of dealing with SAFE, thereby reducing the overall time needed for foreign debt deregistration. In addition, the following measures will be implemented to facilitate the foreign exchange receipts and payment for goods trade: These measures were previously piloted in Shanghai, Zhejiang, and Guangdong-Hong Kong-Macau Greater Bay Area, but now will be extended to all provinces in the country. Cross-border e-commerce is growing in popularity in China.The growth rate of China’s cross-border e-commerce has been higher than the total amount of imports and exports in spite of the slowdown of global trade, which means that the penetration of cross-border e-commerce in import and export trade has been very high.. Alibaba and e-commerce service provider Youzan both released their … The new rules reduce the processing time of transactions using the capital fund as it is no longer necessary to provide information before the settlement of the capital. However, transit trade value with China expanded during the first five months of 2020 at 90.74 billion baht, up 15.74 per cent year-on-year. The verification process of import payment of foreign exchange will be simplified. The Pilot Free Trade Zones (“Pilot FTZs”) offer a high degree of openness in relation to foreign investment and international trade in both goods and services. Prior to these new rules foreign investment enterprises not engaging in investment activities could only make new equity investment in other enterprises with retained profit, which limited further investment to be made in China where the enterprise was short on cash or retained profit. Xu Zhixian is … Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. Limits on the number of foreign currency accounts under capital accounts will be removed, to facilitate foreign exchange settlement under certain capital accounts. Foreign investors’ deposit fund can be used to make investment in China and make payments. 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